Hillshire Withdraws From Pinnacle Merger

In the wake of its recent acquisition by Tyson Foods in a transaction valued at $7.8 billion, the Hillshire Brands Co. has withdrawn its plans to buyout Pinnacle Foods Inc., as per the terms of the Tyson agreement.

In light of discussions with outside legal counsel, Chicago-based Hillshire Brands determined that Tyson's offer constitutes a "superior proposal," and would benefit the company's stockholders financially more so than the Pinnacle deal.

Following approval by Hillshire Brands' board, Pinnacle will be entitled to a $163 million termination fee.